Republic of the Philippines

DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union

MODULE IN
ORGANIZATION AND MANAGEMENT
(2ND QUARTER, WEEK 15)

MELC: Explain the role in the firm of the following functional areas of
management:

a. Human Resource Management

b. Marketing Management
c. Operations Management
d. Financial Management
e. Material and Procurement Management
f. Office Management
g. Information and Communication Technology Management
K to 12 BEC CG: ABM_AOM11-IIi – 39

Objectives:
(If MELC is too broad, Do unpacking by referring from the Curriculum Guide)

Prepared by:

AGNES R. RAMO
SHS TEACHER II
INTRODUCTION:

When starting a business, you must have a business plan. This plan is not, as many
believe, merely a document prepared for lenders and other investors. It's also a guide to how the
business will be shaped and managed. A plan forces the person starting a business to examine and
understand all aspects of organizing and running it, so is an important management tool.

Many new business operators caught up in the euphoric atmosphere of creating their own
business avoid such essential pre-planning because it's not as exciting as devising a product or
selling a service. However, since about 80% of businesses fail within five years, largely because
they were not planned and managed well, pre-planning greatly enhances the chance of success.

The management function varies in accordance of its use. Every organization have
different functional area of management require for planning of activities, organization of
resources, establishment of communication system, leading and motivation of people, and control
of operations for the realization of its goals or objectives.
PRET- TEST:

MATCHING TYPE. Match Column A to column B. Write your answer on the space provided.

ANSWER COLUMN A COLUMN B

1. The actual sequence of activities that a. Inventory
results in the production of goods and Carrying Cost
services that have value for customer.
2. A sum of money to be distributed b. Accounts
according to fixed scheme, as profits
Receivables
on business shares of surplus, or assets
3. The financial policy covering the value of c. Capital Structure
the entire property of a business and Policy
strategies used to balance assets and
liabilities and long- term financing
4. A financial policy which considers d. Ordering Cost
whether to follow a systematic pattern of
earning retention or dividend distribution
5. The financial policy of placing money, e. Value Chain
capital, or other resources in business
ventures/projects to gain profit or interest
6. Outstanding accounts/funds to be received f. Inventory
and listed among the assets of a business
7. The value of a good or stocks of a business g. Dividends
8. The cost/price of keeping or maintaining h. Sales
goods or merchandise Opportunities
9. Purchase or procurement price i. Investment
Policy
10. Fit or convenient time for trading or j. Dividend
selling goods and services. Policy
DISCUSSION:
Human resources management (HRM) is the process of attracting, training,
developing, and maintaining an excellent workforce. Human Resources are also known
as human capital and they, along with other resources, drive the performance of
organizations.
HRM functions of management include the following:
 conducting job analyses;

 planning labor need and recruitment;

 selecting candidates for the job;

 orienting and training new employees;

 managing compensation or pay;

 providing incentives performance;

 evaluating employees’ performance;

 communicating;

 developing employees;

 building employees’ commitment;

 providing good working conditions; and

 handling grievances and industrial relations.

Marketing management is the process of managerial planning and carrying out

the conception, pricing, promotion, and distribution of ideas, goods and services to
bring exchanges that satisfy individual and organizational goals. The marketing
management functions of management includes the following:

 Analyses, planning, implementing, and controlling of goods,

services, and ideas to create exchanges that satisfy customer needs
and company goals.
 Management of marketing resources: sales people, advertising, and
marketing research.
 Analysis of marketing program plans and its implementation.
 Stimulation of demands for the products of the company.
 Making of crucial decisions that will ensure the company’s
competitiveness.
 Making sure that marketing techniques employed are efficient,
effective, and socially responsible or ethical
 Marketing management is important because it is the key to achieving
organizational goals, the satisfaction of customers, and increasing profits.
Advertising is any system of attracting public notice to an event or the desirability of
commercial products for sale.
Operations management is the study of how goods and services are produced in
organizations. Operations management functions of management must include:
 Overseeing the transformation process that changes resources into
finished goods and services;
 Improvement of productivity and competitive advantage; and
 Managing sequence of activities and information along the whole
course of the value chain.
Expertise in operations management is important because it may increase a
company’s chances for survival and success in today’s business environment,
characterized by intense competition and desire for innovative, quality products and
services.
Financial management is the management and custody of the organization’s
funds, seeing to it that funds are effectively utilized in order to provide for all the
needs of the various operating units of the organization. Financial management
functions of management include:
 taking charge of the company’s financial policies and strategies,
investments, capital structures and dividend policies;
 financial management and control; and
 financial planning

Financial management facilitates the choice of investments, financial

policies, and operating mechanism of the organization to effectively achieve its goals
and objectives. Financial managers maximize the wealth of the organization;
stockholders/shareholders satisfy other goals such as providing good customer
service, minimizing bankruptcy risks, and actively participating in present societal
concerns, among others.

Information and Communication Technology Management (ICTM) is the

management of in- formation and communication technology that collects, organizes
and distributes data for the organization’s decision-making functions. ICTM
functions include:
 Developing the organization’s hardware, software, and other
computing and communicating technologies;
  Developing the organization’s management information system
tailored to the needs of the firm’s units; and
 Encouraging e-commerce through Internet use

The widespread use of ICTM has brought the emergence of a Knowledge-based

economy due to easy access to information at low costs through the Internet.
 ICTM may be used for different managerial functions such as scenario
planning decision-making, aiding team work, facilitation of productivity
measurement, easy low cost communication, and world wide selling
through the Internet among others.
 ICTM has revolutionized the business world.

 Knowledge society are composed of individuals or groups of people who

have acquired much information and understanding of things due to
experience, to the pay that they receive and the feeling that they receive
less or more than they deserve.
DEVELOPMENTAL ACTIVITIES:

WRITING

A. Directions: Read each situation below carefully. Write your answers legibly on the
space provided.

1. Name two service firms which in your opinion, are doing a good marketing job. Also,
name two service firms which you think are the opposite of the first two. Explain
your reasoning in each case.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

2. Choose two competing products: Product X, a bottle of liquid breath freshener, and
Product Y, chewable breath freshener. Study the two products, their pros and cons
factors in terms of attracting customer interest. Which company will have a
competitive advantage, the manufacturer of Product X or Product Y? Briefly explain
your answer.

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
 RUBRCS:

More than Meets (4) Does not Partially Does not Meet
Meets (5) fully meet meets (2) (1)
(3)
Content/ Writing is Writes Writing does Writing is Writing is
Ideas confident knowledg not clearly limited in extremely
and clearly e related communicat communicating limited in
focused on to the e knowledge knowledge communicating
the topic. topic. about the about the topic. about the topic.
With little topic. It lefts
details. questions
with the
readers.
Organizatio Sentences Sentences Sentences
Sentences are Sentences are
n are fully are in are brief and disorganized
organized correct confusing
underdevelope and
and can format and loosely
d underdeveloped
easily and organized. .
understand slightly
. developed
.
Vocabulary/ Purposeful Uses a Shows some Choice of word Careless or
Word use of variety of use of varied is trite, vague inaccurate word
Choice word word word choice or flat. choice.
choice. choice.
POST TEST:

Directions: Identify the following sentences.

___________________________1. The actual sequence of activities that results in

the production of goods and services that have value for customer.
___________________________2. A sum of money to be distributed according to
fixed scheme, as profits on business shares of surplus, or assets.
___________________________3. The financial policy covering the value of the
entire property of a business and strategies used to balance assets and liabilities and
long- term financing.
___________________________4. A financial policy which considers whether to
follow a systematic pattern of earning retention or dividend distribution.
___________________________5. The financial policy of placing money, capital, or
other resources in business ventures/projects to gain profit or interest.
___________________________6. Outstanding accounts/funds to be received and
listed among the assets of a business.
___________________________7. The value of a good or stocks of a business.
___________________________8. The cost/price of keeping or maintaining goods or
merchandise.
___________________________9. It refers to the purchase or procurement price.
__________________________10. The term used in the fit or convenient time for
trading or selling goods and services.
Answer Key:

Pre – test:
1. E 6. B
2. G 7. F
3. C 8. A
4. J 9. D
5. I 10. H

Post Test:
1. Value Chain 6. Accounts Receivable
2. Dividends 7. Inventory
3. Capital Structure Policy 8. Inventory Carrying Cost
4. Dividend Policy 9. Ordering Cost
5. Investment Policy 10. Sales Opportunities

References:
A. Books
Cabrera H. Ma F.., et al. 2016. Organization and Management p. 120 - 134,
Philippines, Vibal Group, Inc.
Helen Ma. F. Cabrera, Anthony DC, Altarejos, and Riaz Benjamin. Organization
and Management, Teacher’s Manual for Senior High School Copyright © 2016 by
Vibal Group Inc. (p. 41 – 47)

B. Online and Other Sources

https://www.toppr.com/guides/business-management-and-entrepreneurship/nature-of-
management-and-its-process/development-of-management-theory
https://www.economicsdiscussion.net/management/functional-areas-of-management/31822